New Landlords: Stay on the Right Side of the Law When Renting!

Investing in real estate is often seen as a safe way to invest your money. Property prices usually go up over time, especially in places like Bangkok city, suburbs, and growing provinces. Because of this, more people are moving in, especially to 'condominiums' placed conveniently near public transportation. These places also have nice shared areas that fit different lifestyles. So, these properties are really wanted by buyers and are easier to rent out than before.

The Two types of Condo Rentals

First thing you need to know are the two types of condo rentals, short and long-term rentals.

Monthly Rentals

Renting for 30 days or more, such as monthly condo rentals, is usually worry-free. Condo regulations and hotel laws state that monthly service charges enable legal, hassle-free leasing.

Daily Rentals

For short-term rentals, such as daily or weekly stays, commonly arranged through major international platforms, it's important to note that this practice might actually be against the law. Engaging in such rentals could result in penalties, fines, or even legal actions against both room owners and property developers.

What makes Short-term Rentals Illegal?

Condominiums are for people to live in, not for renting out as a business like hotels. The Hotel Act of 2004 says a 'hotel' is a place meant to offer temporary stays to travelers or others for money.

So, renting condos like hotels is against the law. This can lead to punishments, such as up to 1 year in jail, fines up to 20,000 Baht, or both. Also, if you keep not following the condo rules, you might get a daily fine of 10,000 Baht. Not following the rules can bring big problems.

What to do if you wish to rent out as a Daily rental?

While daily rentals is a huge risk, that doesn't necessarily mean daily rentals aren't always illegal. The following are the terms and conditions for daily rentals.

Daily rentals terms and conditions

If in a single building or unit there are not more than 4 rooms or a total of 20 residents, and the project owner has informed the local authority about the intention to generate extra income, then it's possible to rent out. According to the Ministry of Interior regulations for hotel business types and criteria, it's stated that places with not more than four rooms in the same or different buildings, and accommodating a total of not more than twenty people, can provide temporary lodging services for travelers or individuals in exchange for compensation.

This means that if the project notifies the local authority about generating extra income and informs residents that it's allowed, then within one building, up to four rooms can be rented out, accommodating up to twenty people. Also, if you own a house or townhouse, you can also rent it out daily. This is like using platforms such as Airbnb as long as the rentals do not exceed four rooms and do not host more than twenty people. As long as these limits are followed, the extra income gained from these rentals is considered legal.

Renting out to Foreigners

Here's something else that landlords might not know: they should inform the authorities about foreign tenants using the 'TM.30' report. If landlords have foreign tenants staying in Thailand for a short time, they should tell the Immigration Bureau or the local police station within a day. This helps them follow the law and also ensures that condo tenants are kept in check, ensuring safety for everyone's lives and property.

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Closing Comments

We hope this article will be helpful to many who are considering renting out condos. Many new investors might be unsure if they can do it, if it's legal, or how to handle it. To sum it up simply: If you're renting out condos for 30 days or more, it's doable. But if it's short-term rentals, follow condo regulations and remember to notify the authorities about tenants. This ensures peace of mind and safety for both yourself and your renters.

List your property for free without any hassles with PropertyScout, don't hesitate to speak up if you have any further questions!